Motion Picture Daily (Apr-Jun 1948)

M onday, June 28, 1948 Motion Picture Daily $1,200,000 Theatco Action Is Settled Sax Francisco, June 27. — Out-ofcourt settlement of the $1,200,000 antitrust suit brought by Theatco, Inc., against circuit and distributing companies, was disclosed by Ben Levin, head of Theatco, and operator of the Empire Theatre. ^fc.hough attorneys would not disc Ljthe amount of damages agreed upon, defense attorney Theodore Roche indicated it was less than settlements reached in similar Eastern suits. Some of these have been settled for one-third of the amount sought. In addition to the damage settlement, defendants agreed to follow a new pattern for first-run release. Harold Faulkner, attorney for the plaintiffs, said, "The ruling is satisfactory to the small operators, and is as binding as any contract." Undetermined was Theatco's demand that Fox West Coast be restrained from ever building or acquiring theatres West of Twin Peaks in San Francisco, and that it be forced to divest itself of stock in certain other theatres, including United California Theatres, Inc. Discontinuance of Cryptix Ordered Cincinnati, June 27. — Standard Cryptix numbering system, for use in numbering theatre tickets as a substitute for conventional figure numbering, installed in a number of theatres in the Cincinnati area, should not be used, according to the Cincinnati district U. S. tax office. At the same time the office requested each theatre to advise it when it would be practical for them to quit using Cryptix tickets. Willis Vance, of Cryptix and a Cincinnati exhibitor, reports. Vance said that most exhibitors feel the Government is being hasty in making this decision in light of the court controversy on the matter. Vance is making a test case by continuing to use the system in his theatre. Counter-Order Is Approved by Court A proposed counter-order on the U. S. Supreme Court's decision in the Paramount anti-trust case, submitted to U. S. District Court here on Wednesday by the defendants, was signed and approved on Friday by Judges Augustus N. Hand and Henry W. Goddard. At the same time, the jurists rejected two Government orders, one on the Supreme Court's mandate, the other on a motion for injunctive proceedings. The defendants' counter order covers both mandate and motion. Conciliation (Continued from page 1) Actress Sues Col., Small Los Angeles, June 27. — Janet Blair has filed a Federal Court suit here, asking $250,000 damages from Columbia and Edward Small Productions for alleged violation of her contract, now terminated, under which she was assured co-star billing with Red Skelton in "The Fuller Brush Man." that its eventual success may recommend it as a pattern to be followed elsewhere," Berger said. The attempt at mediation stemmed from a letter to Berger from Andrew W. Smith, Jr., 20th-Fox general sales manager, in which the latter cited trade press reports that Berger intended to encourage damage suits on a "wholesale" basis. Smith suggested that before any court action be taken the possibilities of round-table discussions be considered. Sees Adoption by Others Berger, in his reply, expressed the opinion that an "honest effort" on the part of 20th-Fox will "do away with 99 per cent of brewing litigation." He said he felt certain of the success of the program if given a fair trial and added the company might do well to expand the policy. He said further that the program's success undoubtedly would mean its adoption by other distributors. (A canvass of other distributors in New York at the weekend showed that none has any immediate plans for such an undertaking. At M-G-M it was said that the company has longsince encouraged exhibitors to take any grievances to the company. M-G-M's exhibitor relations department is in existence to a large part for this purpose, it was said. Minneapolis Meeting Called The exchange of letters led to a Minneapolis meeting attended by Smith, Berger, Stanley Kane, XCA executive director ; Martin Moskowitz, executive assistant to Smith ; Jack Lorentz, Central division sales manager ; Moe Levy, Minneapolis branch manager, and Sam Shain, director of exhibitor and public relations for distribution. Xorth Central Allied' s committee members are E. L. Peaslee, chairman, and Henry Green and Ted Mann. Alternates are Jack Wright, George Granstrom, and one yet to be named. Kane will serve as counsel. Para. Plans Drive-in Near Poughkeepsie Plans are under way here for the construction of a 600-car drive-in on a site owned by Paramount outside of Poughkeepsie, X. Y. The theatre will be operated by Xetco Theatres. Paramount affiliate of which Harold Royster is general manager. 52 Anti-trust Suits For $46,755,000 Paramount president Barney Balaban's annual letter to company stockholders discloses that 52 anti-trust suits have been brought by exhibitors against distributors in some of which money damages were demanded, while in others injunctive relief against clearance or a right to an earlier run of pictures was sought. In those suits in which a money judgment is sought, the total amount claimed is $46,755,000. To date, approximately $1,000,000 dollars has been paid out by Paramount in expenses and in judgments in connection with such suits. Attention of the stockholders was called to the item "Reserve for Contingencies" on the company's balance sheet in the amount of $9,711,327. Balaban stated that this reserve had been created out of past earnings for all contingencies, possible liabilities from judgments against the corporation being only one of them. Goldman Demands (Continued from page 1) tained that according to the recent Supreme Court ruling in the industry anti-trust suit "competitive bidding is an inadequate remedy." If this move is unsuccessful, Goldman's petition continued, he will seek an injunction to bar companies from cross-licensing in this area. US to Ask Injunction In Griffith Case Oklahoma City, June 27. — Herbert Bergson, assistant Attorney General, has told the U. S. attorney for Western Oklahoma to set in motion steps which will give the Government an injunction July 1 to prevent the Griffith circuit from acquiring or disposing of financial interests or theatres involved in the Government anti-trust suit. Bergson said the action is in line with the Supreme Court mandate on clearances and reductions. One major local exhibitor says reductions started in most cases prior to the Griffith case, with deluxe second-run clearances beginning locally more than a year ago. Two other exhibitors said there have been no reductions as far as it concerned them. SGP Directors Hold Meeting in Chicago Chicago, June 27. — Routine business matters were discussed at a twoday board of directors meeting of Screen Guild Productions which ended here on Friday. John J. Jones, SPG president, presided. In addition to 21 franchise holders, among those attending were: F. A. Bateman, Western sales manager ; Arthur Greenblatt, Eastern sales manager, and Robert Lippert, vice-president. Board members present were Al Dezel, Jack Engel, Bert Stern, John Franconi, J. Francis White and A. Lockwood. 'M ICKEY' America's U^w Sensational 150-plus Jay -and -date engagements now establishing box-office highs throughout Midwest as LOIS BUTLER, America's new young singing sensation, captures all hearts in Eagle Lion's "MICKEY," in Cinecolor! HEARING IS BELIEVING! We'll send you, absolutely FREE, Lois Butler's latest Capitol recording, "Dreams in My Heart." 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